Review this old thread where someone was actually able to install SQL Server on Parallels. I would recommend that you try with SQL 2019 rather than SQL 2016.
SQL Server giving error
Asgar Abdullazade
1
Reputation point



SQL Server | Other
2 answers
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Erland Sommarskog 133.9K Reputation points MVP Volunteer Moderator2022-03-13T10:55:10.65+00:00 -
Erland Sommarskog 133.9K Reputation points MVP Volunteer Moderator2022-03-12T23:03:17.383+00:00 If memory serves, SQL Server is not supported on M1.